Entrepreneurial development in South Africa through innovation: A model for poverty alleviation

Abstract

Orientation: The development agency could be equipped with a model that will assist them in supporting mobile application development entrepreneurs towards enhanced competitiveness that could assist in alleviating poverty and reducing economic inequality.

Research purpose: The purpose of this study is to explore the evolution of a model to support mobile application development entrepreneurs towards enhanced competitiveness.

Motivation for the study: This study was motivated by the views on black economic empowerment where little has been done to impact the lives of black people on a larger scale. Broader participation of black people in the formal economy is required to achieve sustainable development and prosperity. Studies suggest that innovation through technology transfer is regarded as a contributor to economic growth.

Research design, approach and method: This study adopted the Critical Realist Methodology Model via an inductive research approach. Focused interviews with academics, small and medium-sized enterprises in the innovation and technology industry and development agencies were conducted.

Main findings: There is business potential in mobile applications, but entrepreneurs have difficulty in commercialising these. They could be assisted with a model that would transform their applications into real business opportunities.

Practical/managerial implications: The antidote to disruptive innovation is a management response. What is required from management is that it needs to bring about a paradigm shift in the way that the whole notion of a business is remodelled.

Contribution/value-add: This study reveals a multi-factorial strategy model in the form of the Disruptive Innovation State Response Model that could support mobile application development entrepreneurs towards enhanced competitiveness.